BEFORE THE DISTRICT CONSUMER FORUM : WARANGAL Present: Sri D. Chiranjeevi Babu,
President.
Sri N.J. Mohan Rao,
Member
And
Smt. V.J. Praveena,
Member.
Thursday, the 31st day of July, 2008.
CONSUMER COMPLAINT NO. 25/2007
Between:
Balne Vishnumurthy,
S/o Ramaswamy, Age: 60 yrs,
Occ: Retd.Employee,
H.No.2-7-1292, Vijayapal Colony,
Waddepally, Hanamkonda.
… Complainant
AND
Model Chit Corporation Limited,
Rep.by its Branch Manager,
Near Pochamma Maidhan,
M.G. Road,
Warangal.
… Opposite Party
Counsel for the Complainant : Sri K. Rajeshwar, Advocate.
Counsel for the Opposite Party : Sri Y. Aravind, Advocate.
This complaint coming for final hearing before this Forum, the Forum pronounced the following Order.
ORDER
Per Smt. V.J. Praveena, Member
This is a complaint filed by the complainant B. Vishnu Murthy against the Opposite party under section 12 of Consumer Protection Act, 1986 for a direction to pay an amount of Rs.36,902.50 along with interest and Rs.20,000/- towards damages and Rs.2,000/- towards costs.
The brief averments contained in the complaint filed by the complainant are as follows:
The case of the complainant is that the complainant is a chit holder in the Opposite party chit fund and the Opposite party is Registered Chit Fund Company and is represented by its Branch Manager. The complainant is a subscriber of two chits organized by the Opposite party bearing Chit No.MT 5VW/5 & 8. The chits are for the value of Rs.1,00,000/- payable @Rs.2,500/- per month for a period of 40 months. The complainant has paid the amount for 27 monthly installments each to the Opposite party under due receipts entered in the pass book issued to the complainant. The Opposite party has stopped receiving installments in the above said chits after receiving of 27 installments and started avoiding the complainant. On enquiries the complainant came to know that the Opposite party chit fund has become defunct and is liable to pay huge amounts to many subscribers and the Opposite party has stopped receiving amounts and conducting bid auctions. The complainant has demanded to pay the 27 installments amount paid in the above said two chits but the Opposite party has failed to reply and pay the amounts nor complete the chit. The complainant has made repeated demands going round the Opposite party office. The Opposite party has issued cheque No.25133, dt.30-09-04 for Rs.49,629/- and Cheque No.25134, dt.31-08-04 for Rs.39,639/- drawn on S.B.H. Nakkalagutta Branch towards part payment of the two chits, which are dishonored on presentation. On continuous persuasion and follow up the Opposite party has paid the cheques amount, but the Opposite party has failed to make payment of Rs.18,451.25 in each chit i.e, total sum of Rs.36,902.50. The Complainant is entitled for the installments amount along with the Dividend and accrued interest from 27-04-03 as the Opposite party failed to continue and complete the balance months till termination of the chits. Thereafter the complainant filed this case before this Forum to direct the Opposite party to pay an amount of Rs.36,902.50 with costs.
The Opposite party filed the Written Version stating that he denied all the complaint averments except admitting that the complainant has received payments towards full and final settlement of the amount. The Opposite party has also stated that the defaulted non-prized subscriber is not entitled for any dividends as per the Chit Agreement and as per the Chit Fund Act and prayed this Forum to dismiss the complaint.
The complainant in support of his claim filed his Affidavit in the form of chief examination and also marked Exs.A-1 and A-5. On behalf of Opposite party Sri Ch.Narsimha Murthy filed his Affidavit in the form of chief examination and also marked Exs.B-1 and B-11.
Now the point for consideration is whether there is any deficiency of service on the part of the Opposite party, if so, the complainant is entitled to get an amount of Rs. 36,902.50 paise along with interest 2% p.a. till full realization of his amount and further entitled to get an amount of Rs.20,000/- towards damages and Rs.2,000/- towards costs of the complaint.
After arguments of both side counsels our reasons are like this:
This Forum has to see first point whether there is any chit existence is there or not and whether there is any protest by the complainant at the time of receiving an amount.
For these points our answer is that he has paid 27 installments, certainly he comes defaulter. The contention of the complainant is that he has to receive the dividend from the Opposite party. The arguments of the complainant is that the chit is not in existence i.e, the reason only the complainant has not paid 40 months fully. For this our answer is that whether the chit is in existence or not in existence, it is the burden on the complainant itself and he has to file some documents to show whether the chit is in existence or not. Further the counsel for the complainant argued that the Opposite party stopped the running of the chit when there is no existence of the chit, that is the reason only the complainant stopped to pay the installments to the Opposite party. For this the complainant has not filed any single document to show that the chit is not in existence. When there is no any documentary proof this Forum come to the conclusion that there is existence of the chit and the complainant is a defaulter. As per Chapter VII of A.P. Chit Fund Act, 1971 Section 33 Refund of non-prized subscriber’s contribution:- Except in the cases referred to in clauses (a) (b) of Sec.31:-
a) Every non-prized subscriber shall unless otherwise provided for in the chit agreement, be entitled to get back his contribution at the termination of the chit without deduction for dividend, if any, received by him.
As per agreement it is clear that if any person comes under defaulter he is not entitled to get the dividend. So when the complainant is a defaulter he is not entitled to get the dividend . In this case also it is clear that there is no any documentary proof to show that there is no chit existence. It clearly goes to show that the chit is in existence and the complainant is a defaulter.
Further the complainant already received the entire amount under full and final settlement time even at the time of receiving of the amount by the complainant he has not mentioned the word “Protest”. Under Protest he has received the amount. If he really mentioned the same under Protest, we accept Ex.B-2, B-4 and B-6 certainly this Forum can believe that Under Protest he received the same amount. When the word Protest is not mentioned he has received the entire amount and we already stated supra that he is a defaulter as per the agreement in Ex.B-1, when he is a defaulter he is not entitled to get any dividend. For the foregoing reasons given by us, we are of the opinion that the complainant is not entitled to get anything from the Opposite party. Hence, we answered this point accordingly in favour of Opposite party against the complainant.
Point No.2: To what relief:- The first point is decided in favour of Opposite party against the complainant, this point also decided in favour of Opposite party against the complainant.
In the result, this complaint is dismissed, but without costs.
(Dictated to the Stenographer, transcribed by her, corrected and pronounced by us in the open Forum today, the 31st July, 2008).
Sd/- Sd/- Sd/-
Member Member President,
District Consumer Forum, Warangal.
Appendix of Evidence
On behalf of Complainant On behalf of Opposite Party
Affidavit of complainant filed Affidavit of Opposite party filed.
EXHIBITS MARKED
On behalf of complainant
1. Ex.A-1 is the Passbook issued by Opposite party.
2. Ex.A-2 is the Passbook issued by Opposite party.
3. Ex.A-3 to 5 are the original account extracts.
On behalf of Opposite parties.
1. Ex.B-1 is the Agreement of the Chit.
2. Ex.B-2 to B-8 are the payment vouchers.
4. Ex.B-9 is the Xerox copy of pay order.
5. Ex.B-10 Payment voucher.
6. Ex.B-11 is the Xerox copy of Pay order.
Sd/-
PRESIDENT.
